Bad news for buyers as best mortgage deals disappear fast while rates highest for eight years
- The average five-year deal is now higher than 4 per cent for first time since 2014
- Typical two-year fixed mortgage also rose for the tenth month to 3.95 per cent
- There are fewer deals to choose from, with 149 mortgage deals cut since July
Mortgages rates have leapt to an eight-year high as the best deals being offered disappear within days.
The average five-year deal is now higher than 4 per cent for the first time since October 2014, data shows. A typical two-year fixed mortgage also rose for the tenth month in a row to 3.95 per cent.
Meanwhile, the shelf-life of home loan products fell, with offers now typically pulled from the market after just 17 days.
There are also fewer deals to choose from, with 4,407 mortgage products available at the start of this month, down 149 since the beginning of July.
Mortgages rates have leapt to an eight-year high as the best deals being offered disappear within days
Eleanor Williams, of data analysts Moneyfacts, warned: ‘Those looking for a new mortgage have the shortest length of time we have ever recorded to try to secure their deal of choice.’
It comes just days after the Bank of England raised its base rate by 0.5 percentage points – the biggest increase in 27 years – in a bid to control spiralling inflation.
The rate, which banks use to set mortgage costs, is now at a 13-year high of 1.75 per cent, up from 1.25 per cent.
This was the sixth consecutive increase since December.
About two million homeowners on cheap fixed deals face paying thousands of pounds more annually when their loans come to an end next year.
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